Libya’s Central Bank devalues Dinar by 13.3% amid ongoing political divisions

The Central Bank of Libya (CBL) has announced a significant 13.3% devaluation of the Libyan dinar, adjusting the exchange rate to 5.5677 dinars per US dollar, effective from April 6, 2025.

This decision marks a shift from the previous rate of 0.1555 to 0.1349 Special Drawing Rights (SDRs) per dinar. The move comes as part of the CBL’s response to the prolonged political and institutional fragmentation within Libya, which has hindered efforts to unify the country’s dual financial systems under rival governments.

In its statement, the CBL outlined the necessity of the devaluation, highlighting that there are no immediate prospects for resolving the political divisions that continue to undermine Libya’s economic stability. The central bank reiterated its commitment to collaborating transparently with all political parties, urging both legislative and executive authorities to prioritize a unified economic framework. This includes the approval of a consolidated budget and the adoption of harmonized macroeconomic policies aimed at stabilizing public finances and supporting the dinar’s value.

The CBL also disclosed that it had been forced to tap into a portion of its foreign currency reserves to maintain the exchange rate stability in the short term. Despite the ongoing challenges, the central bank reported that Libya’s total foreign assets exceed $94 billion, with $84 billion held in reserves. The CBL emphasized that it remains dedicated to safeguarding these assets, despite the precarious conditions in which it operates.